How Could ESG Startups Close Enterprise Deals - Jonathan's Insights as Muuse's CEO

Welcome back to the Maven Club interview series! Today, we’re excited to share insights from Jonathan, the CEO of Muuse, who’s pioneering sustainable solutions in Southeast Asia. Jonathan opens up about his journey from government work to leading a tech-driven company focused on eliminating single-use packaging. His experiences in finding product-market fit and scaling a sustainable business offer invaluable lessons for entrepreneurs aiming to make an environmental impact. Here are the highlights of his inspiring advice for those embarking on their entrepreneurial journey.

Who is Jonathan?

Jonathan is a UK native living in Singapore, with an interesting background in government and social enterprise. He transitioned from working on foreign policy to social enterprise, focusing on ethical business and environmental issues. Now CEO of Muuse, he addresses single-use packaging and sustainability issues in Southeast Asia.

What does Muuse do? 

Muuse is a company dedicated to creating sustainable infrastructure for cities by eliminating single-use packaging through a smart, tech-driven reuse and return system. They offer reusable packaging solutions, seamlessly integrated with business operations, to reduce waste, cut carbon emissions, and promote a circular economy across various sectors globally.

How did Muuse find their Product-market-fit? 

"It's been very tempting to go, we could do this here, but actually we could also do it over there."

• Initial Vision and Pivot from RFID to QR: Muuse initially envisioned using RFID technology to track reusable items but faced challenges with high costs, complexity, and uncertainty around the best materials for reusable packaging. These challenges led Muuse to pivot to QR codes as a more practical, cost-effective solution for the consumer-facing side of their operations. However, Muuse always recognized the potential role of RFID in streamlining back-end logistics, particularly where centralized cleaning is involved. They are now moving towards a hybrid approach, using QR codes for consumer interactions and RFID for efficient back-end logistics management. 

• Why QR Technology: QR codes were chosen because they are user-friendly and widely accessible—everyone has a QR reader on their phone. This allowed Muuse to quickly engage consumers and test their model with minimal overhead, making QR a practical choice for scaling their operations.

• Exploring Multiple Use Cases: Muuse’s technology is flexible, leading them to explore various sectors such as cafes, restaurants, office catering, and food delivery (accelerated by COVID-19). They also ventured into large-scale projects like Swire Properties in Hong Kong.

• Challenges of Focus: The broad applicability of their solution made it difficult to focus. Muuse struggled to limit their scope, leading to diluted efforts across too many projects. They are now working on refining their focus, narrowing down which use cases and value chain segments to prioritize.

How Did Muuse Close Deals with Enterprises Like Swire Properties & Starbucks?

"Swire approached us for our tech-driven reuse system, sleek branding, and tailored solutions, with few competitors in Asia."

• Inbound Interest from Enterprises: Swire Properties approached Muuse after observing their work in the Asian market. Swire was specifically looking for a tech-driven reuse system, which aligned perfectly with what Muuse offered. Muuse’s early presence in Asia also made them a natural choice, as there were few competitors in the region.

• Targeting Wealthier, Compliance-Driven Corporations: Muuse focuses on multinational corporations (MNCs) or companies with mandatory environmental reporting requirements, such as those in Singapore. These enterprises, driven by global net-zero targets, are more likely to invest in sustainable solutions, making them ideal candidates for Muuse's offerings.

• Strong Branding: Muuse’s sleek, professional branding was a significant factor in attracting enterprise clients like Swire. The polished appearance of their products made them suitable for high-visibility areas such as office lobbies, where aesthetics matter.

• Customizing Solutions: Muuse emphasizes understanding client needs and tailoring solutions to add value for their stakeholders, whether employees, consumers, or guests. This personalized approach helped secure enterprise deals by aligning Muuse’s offerings with client expectations.

• Why Swire Chose a Small Startup: Despite being a small startup, Muuse provided unique, tech-enabled solutions for reuse systems that larger companies couldn’t match. Swire valued Muuse’s agility, innovation, and niche expertise. Their ability to deliver a complete, end-to-end solution—from technology to implementation—made them a versatile and attractive partner for sustainability goals.

Muuse's Shift from B2C to B2B:

“B2B allowed us to lower consumer barriers and align with business practices where companies already purchase packaging.”

• Challenges with the B2C Model:

  • Limited Consumer Engagement:

    • Initially targeted green-minded consumers with a user subscription service.

    • Difficult to scale due to consumers not prioritizing packaging in purchase decisions.

    • Only about 5% of consumers were willing to pay extra for sustainable options.

  • Convenience as a Barrier:

    • Asking consumers to subscribe or pay for reusable packaging added friction.

    • Hard to achieve mainstream adoption due to the lack of convenience.

• Why Muuse Shifted to B2B:

  • Lowering Barriers for Consumers:

    • Shifted to a B2B model where businesses pay for packaging, making it free for consumers.

    • Removed the need for consumer subscriptions or payments, reducing friction.

  • Aligning with Business Practices:

    • Businesses already purchase packaging, making it logical for them to cover costs.

    • Easier to integrate Muuse’s solutions into existing business operations.

  • Scalability and Reach:

    • B2B allowed Muuse to scale more effectively by partnering with large enterprises like Starbucks.

    • Enabled broader audience reach than individual consumer subscriptions could achieve.

• Benefits of the B2B Model:

  • Enhanced Brand Trust:

    • Partnering with established businesses lent credibility to Muuse.

  • Focused Expertise:

    • Allowed Muuse to focus on providing tech-driven, reusable packaging solutions.

    • Partner brands handled consumer-facing interactions, enabling a seamless experience.

  • Sustainable Growth:

    • Ensured a stable revenue stream and better alignment with Muuse’s mission.

    • Facilitated long-term sustainability and growth through large-scale enterprise partnerships.

How Technology Plays a Key Role in Muuse's ESG Solution

"We use tech to create a consumer-friendly borrowing system, streamline returns, and track assets, ensuring high return rates and operational efficiency."

• Mirroring Scaled Ecosystems: Muuse aims to replace the highly scaled and convenient single-use packaging system. Technology plays a crucial role in creating a new, consumer-friendly system where items are borrowed, used, and returned efficiently.

• Borrowing System with Accountability: Muuse uses tech to implement a library-like borrowing system where customers are accountable for returning items. This system avoids deposits, which can be a mental barrier, while ensuring high return rates (99%). Technology allows Muuse to track returns and enforce penalties if needed.

• Streamlining User Experience: Despite the effectiveness of the current system, Muuse recognizes the friction involved in scanning items during borrowing and returning. They are exploring ways to integrate their system into existing consumer tools like delivery platforms, aiming to automate backend processes and reduce user effort.

• Experimenting with Convenience: Muuse is piloting a project in Northern California, making reusable cups the default option with public return bins and home collection. This experiment tests whether increased convenience leads to higher return rates, with technology handling backend tracking and asset management.

• Backend Tracking and Data Collection: Technology tracks items through cleaning, storage, and redistribution, ensuring efficient operations. While consumer-facing data is minimized, backend data on usage and product lifecycle remains essential for sustainability and commercial success.

Jonathan's Secret Sauce as a Successful GTM Leader:

"We think these things can happen and we are imaginative about the ways in which we can make them work."

• Can-Do Attitude: Jonathan emphasizes a "can-do" mentality, inspired by the Singaporean phrase "can is can," meaning they are committed to finding solutions for clients even when challenges arise. This adaptability allows Muuse to tailor their offerings without compromising their core principles.

• Resilience and Operational Excellence: Jonathan highlights resilience as key, especially in the sustainability space where rejection is common. He balances visionary thinking with a strong focus on operational execution, ensuring that grand ideas are effectively implemented.

• Optimism and Imagination: Optimism drives Jonathan and the team, believing in the possibility of success despite uncertainties. This outlook fuels their creativity in developing innovative, tech-driven solutions that can be mainstreamed.

• Balancing Vision and Execution: Jonathan successfully navigates the dual demands of strategic planning and hands-on operations, ensuring that Muuse’s vision is grounded in practical, executable steps, making them effective in both short-term and long-term goals.

We hope Jonathan’s insights and experiences resonate with you as much as they did with us. By focusing on sustainable innovation, product-market fit, and the strategic role of technology, Jonathan underscores the importance of resilience and adaptability in driving environmental change. His journey is a powerful reminder that impactful solutions come from visionary thinking and operational excellence. Subscribe HERE for more exclusive interviews and insights as we continue to highlight industry leaders making a real difference in the world.